Ontario's Minister of Finance has approved new rules that will prevent non-accredited investors from putting more than $2,500 into a crowdfunded business.
On Jan. 14 the Ontario Securities Commission (OSC) announced that Ontario Minister of Finance Charles Sousa had approved Multilateral Instrument 45-108 Crowdfunding (MI 45-108). If crowdfunders wish to qualify for a prospectus exemption, the new rules place limits on the distribution period, the total amount of money that may be raised, and the amount that purchasers may buy. Issuers are also required to make their crowdfunding distribution through a single funding portal.
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